Retail credit activity on Nexo and Ethereum borrowing on Aave show a cycle of aggressive leverage deployment followed by a sustained deleveraging phase. Credit withdrawals on Nexo peaked at $136.6 million in January 2025 before falling sharply, while Ethereum borrowing demand on Aave surged to 1.2 million ETH by mid-2025 before collapsing. This signals a broad market liquidity reset as speculative appetite retreated, with the NEXO token price continuing its downtrend as of early 2026.
Retail credit withdrawals on the Nexo platform opened January 2025 at an elevated $136.6 million. This reflected aggressive leverage deployment during strong market conditions at the time.
Withdrawals fell to $85.3 million in February and $54.4 million in March as volatility rose. This signaled forced balance-sheet tightening rather than organic demand cooling from retail participants.
Activity then rebuilt through April, May, and June, reaching a local peak at $95.8 million. This rebound suggested traders re-engaged leverage into recovering price momentum.
The second half of 2025 showed structural fatigue, however, with withdrawals sliding to $22.04 million by November. This sustained deleveraging implied balance sheet resets while excess leverage cleared from the market.
Withdrawals stabilized in December 2025 and January 2026 at approximately $24 million. That flattening suggests credit demand may be bottoming, which is often a precursor to gradual market reaccumulation.
Separately, Ethereum borrowing on Aave saw demand build steadily through 2024. Borrowing momentum accelerated into early 2025, with utilization approaching 800,000 ETH while rates spiked.
This signaled crowded leverage and rising collateral demand during strengthening ETH price trends. Borrowing peaked in mid-2025 near 1.2 million Ethereum, marking maximum speculative exposure.
Thereafter, borrowing on Aave fell toward 600,000 ETH as deleveraging pressures emerged. By early 2026, utilization neared 300,000 ETH, and rates eased toward 1.5–2%.
Meanwhile, the NEXO token extended its downtrend as the price slipped below key resistance bands. Selling pressure accelerated, driving the price toward $0.73, with moving averages signaling sustained downside control.
The RSI hovered near 26, reflecting oversold conditions and weak reversal strength. This alignment showed persistent distribution rather than capitulation in the token’s price action.
